asked the Minister for the Environment if he will state in the case of tenants purchasing local authority houses under tenant purchase schemes where transfers are held up because of local authority title or mapping difficulties, whether they will be given credit against the purchase moneys for rent paid during such periods of delay; and if he will make a statement on the matter.
Written Answers. - Local Authority Tenant Purchase Schemes.
519.
Sales of local authority houses are effected by means of transfer orders, made under section 90 of the Housing Act, 1966, which are in a prescribed form and specify the date on which the sale becomes effective. In accordance with section 106 of the Act the transfer order cannot be made until the local authority are satisfied that the house is in good structural condition and a certain amount of time will normally elapse between the making of an application to purchase by the tenant and the making of the transfer order, particularly if structural repairs to the house are required.
Tenants who have applied to purchase their houses continue to pay rent on the normal basis until the sale becomes effective and they become owners of their houses. An allowance of tenancy discount at a rate of 3 per cent per annum off the gross price of the house continues to accrue to the tenant up to the effective date of sale subject to the relevant maximum deduction of 30 per cent in built up areas or 45 per cent in other areas.
It is not possible, therefore, to allow credit against the purchase moneys for rent paid prior to the effective date of sale. Where, however, inordinate delays occur in the making of transfer orders through no fault of the local authority or of the tenant, I am considering the possibility of granting some concession in so far as the amount of rent payable is concerned.